Justice Minister mandates payment proof, boosting transparency in real estate transactions
Kuwait’s Minister of Justice, Nasser Al-Sumait, issued a decision mandating proof of payment via bank transfer or certified check for real estate transactions to enhance transparency, combat money laundering, and prevent fraud.
The Minister of Justice, Nasser Al-Sumait, issued a ministerial decision on Monday, 24th March, mandating that all real estate transactions require proof of payment through bank transfers or certified checks.
Al-Sumait stated in a press release that, Resolution No. (194) of 2025, regulates the payment process for all financial obligations in documents, contracts, official debt statements, and mortgages issued by the Ministry of Justice.
Emphasizing further, Al-Sumait said that the decision is part of efforts to combat money laundering in real estate transactions and prevent fraudulent mortgages and debt statements. He added that it also seeks to close legal loopholes that previously enabled illicit transactions.
Al-Sumait explained that the decision helps safeguard the real estate market from financial manipulation, enhances transparency, and protects buyers and sellers from fraud and fictitious sales. He explained that real estate registry employees are now authorized to refuse contract authentication unless valid banking proof of payment is provided, reinforcing customer confidence by ensuring all transactions are formally documented.
Moreover, Al-Sumait noted that the decision exempts contracts finalized before August 2021, differences between the actual price and the appraised value, real estate exchanges without cash payments, debt declarations in place of cash transactions, and properties mortgaged to settle a seller’s debt.
Source: Al Rai
